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"application service" is correct and usable in written English.
You can use it when referring to a service or software for processing or managing the applications you receive, for example, "The company uses a secure application service to manage job applications."
Exact(43)
Moreover, hundreds of application service providers already offer online services.
Newgen provides business-to-business channel management application service.
The sales transactions for Warner's service will be handled by RioPort, an application service provider.
Even application service providers have mounted a comeback, led by I.B.M.
Students apply to dental school through a centralized application service, the Associated American Dental Schools Application Service AADSASS).
In 1998, revenues for application service providers totaled about $400 million in North America, according to the research firm Dataquest.
Similar(17)
Can you take advantage of new application service-delivery models like cloud computing?
"Ediets is almost like a micro-application service provider.
Applications and services only manipulated a set of OpenSLP functions without generating application/service specific traffic.
The rise of the ASP application service provider"–is roiling the entire industry.
Traditional managed service provisioning thus follows the Application Service Providing (ASP) model [12, 14, 20].
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com